Boston Scientific Corp (BSX)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 10,536,000 | 9,482,000 | 9,270,000 | 8,671,000 | 7,964,000 |
| Inventory | US$ in thousands | 2,484,000 | 1,867,000 | 1,610,000 | 1,351,000 | 1,579,000 |
| Inventory turnover | 4.24 | 5.08 | 5.76 | 6.42 | 5.04 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $10,536,000K ÷ $2,484,000K
= 4.24
The inventory turnover ratio for Boston Scientific Corp. has shown a declining trend over the past five years. It decreased from 2.56 in 2020 to 1.75 in 2023. This indicates that the company is selling its inventory less frequently compared to previous years. A lower inventory turnover ratio could suggest issues with inventory management such as overstocking or slow-moving inventory. It may also reflect weaker sales performance or inefficiencies in the supply chain. Boston Scientific Corp. should closely monitor its inventory turnover ratio and take proactive measures to optimize inventory levels and improve operational efficiency.
Peer comparison
Dec 31, 2023